Banks pilot tokenised deposits as stablecoin competition intensifies
Four institutions are testing programmable settlement inside existing deposit liabilities rather than issuing tokens outright.
Four banks across three jurisdictions are running pilots for tokenised deposits, a design that keeps the customer claim on the bank's balance sheet while adding programmable settlement to the transfer layer.
The appeal for supervisors is that the instrument is a deposit, with the existing prudential and insurance framework attached, rather than a new class of liability requiring bespoke rules.
Interoperability is the unresolved problem. A tokenised deposit at one bank is not fungible with one at another, so cross-bank transfers still route through conventional clearing.
Corporate treasurers involved in the pilots told DC10AUDIO the near-term value is intraday liquidity management within a single banking group, not open-network payments.
Stablecoin issuers argue that limitation is precisely why their instruments keep winning cross-border flow.
Spotted an error? Read our corrections policy or email newsroom@dc10audio.com. Nothing here is investment advice.